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As Peter Drucker, the well-known management consultant once said, "Management is doing things right; leadership is doing the right things." Nowhere is this observation more applicable than in the field of Facility Management—a strategic discipline that ensures the functionality, comfort, safety, and efficiency of the built environment. A key enabler of business strategy, Facility Management plays a pivotal role in the effective utilization of an organization's resources and capabilities—a fact that can be overlooked amidst daily operational pressures.

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Flevy Management Insights: Facility Management

As Peter Drucker, the well-known management consultant once said, "Management is doing things right; leadership is doing the right things." Nowhere is this observation more applicable than in the field of Facility Management—a strategic discipline that ensures the functionality, comfort, safety, and efficiency of the built environment. A key enabler of business strategy, Facility Management plays a pivotal role in the effective utilization of an organization's resources and capabilities—a fact that can be overlooked amidst daily operational pressures.

For effective implementation, take a look at these Facility Management best practices:

Understanding Facility Management

The pivotal role of Facility Management in today’s rapidly changing business environment cannot be understated. It's an interdisciplinary field that focuses on the holistic coordination of people, place, process, and technology—encompassing everything from strategic planning and project management, to operational excellence and performance management.

Facility Management involves the orchestration of various management disciplines such as financial and human resources management, property management, information technology, governance and risk management—all aimed at fostering an enabling work environment that helps employees perform at their peak.

Explore related management topics: Information Technology Operational Excellence Strategic Planning Performance Management Risk Management Human Resources Management Project Management

Best Practices in Facility Management

Some of the best practices that have emerged in the field of Facility Management include:

  • Establishment of clear mission and goals: These serve as a guiding light for the Facility Management team, providing clarity on roles, responsibilities, and performance expectations.
  • Adoption of technology: The use of Computer Aided Facility Management (CAFM) systems, Building Management Systems (BMS), Intelligent Building Concepts, and even AI and IoT can significantly enhance efficiency and productivity of facilities.
  • Training and development: Continuous learning is key to ensuring the Facility Management team is updated with the latest standards, technologies, and best practices in the industry.
  • Sustainability initiatives: These can range from energy and water conservation efforts to waste management and recycling programs.

Explore related management topics: Best Practices

Strategic Impact of Facility Management

Increasingly, senior executives are realizing the strategic implications of Facility Management. Beyond the day-to-day operational tasks, Facility Management plays a crucial role in strategic planning. Decisions relating to real estate and capital investments, sustainability initiatives, employee productivity, and even branding are often intertwined with facilities management.

In the digital age, Facility Management also plays a prominent role in Digital Transformation, procuring and managing the technologies that are necessary for organizations to remain competitive. This positions Facility Management as not just a support function, but as a strategic partner in business success.

Explore related management topics: Digital Transformation Real Estate Facilities Management

The Changing Landscape of Facility Management

The global pandemic has drastically accelerated trends within Facility Management. Work from home arrangements, stringent sanitation protocols, and a renewed focus on employee health and well-being have catapulted Facility Management to the forefront of strategic importance. In this rapidly changing context, the Facility Management function must be flexible and innovative, proactively anticipating and addressing new challenges.

For instance, Facility Management priorities are now shifting to enhance the ‘human experience’. Workspaces are being designed to increase employee satisfaction, productivity and collaboration. The integration of technology into facility management has resulted in Smart Buildings capable of optimizing energy usage, regulating lighting and temperature, tracking asset utilization, and even analyzing space usage to design more efficient layouts.

To close this discussion, Facility Management is evolving from an operational function to a strategic discipline. Its potential to positively impact significant aspects of business, including employee productivity, capital investments, corporate branding and sustainability uniquely positions it as a key enabler of Corporate Strategy.

Explore related management topics: Corporate Strategy

Facility Management FAQs

Here are our top-ranked questions that relate to Facility Management.

In what ways can Facility Management drive cost savings without compromising on quality or employee experience?
Facility Management (FM) plays a pivotal role in the operational efficiency of any organization. It not only ensures the smooth functioning of the physical workspace but also significantly impacts the overall cost structure of the business. [Read full explanation]
How can cross-functional collaboration be optimized to enhance Facilities Management outcomes?
Cross-functional collaboration is a strategic approach that involves bringing together teams from different functional areas of an organization to work on a common goal or project. In the context of Facilities Management (FM), this approach can significantly enhance outcomes by leveraging the diverse skills, perspectives, and expertise of various departments. [Read full explanation]
In what ways can Facilities Management drive innovation within an organization?
Facilities Management (FM) has traditionally been viewed as a support function, focused on maintaining and improving the efficiency of an organization's physical assets. However, in today's rapidly evolving business landscape, FM has the potential to drive innovation within organizations. [Read full explanation]
What role does technology play in enhancing the strategic value of Facilities Management?
Technology plays a pivotal role in enhancing the strategic value of Facilities Management (FM) by driving efficiency, sustainability, and innovation. In an era where operational excellence and sustainability are paramount, leveraging technology in FM can significantly contribute to an organization's Strategic Planning and overall business transformation. [Read full explanation]
What are the key metrics for assessing the performance and impact of Strategic Facilities Management?
Strategic Facilities Management (SFM) plays a pivotal role in the operational efficiency, sustainability, and overall strategic direction of an organization. It goes beyond the traditional scope of maintaining physical buildings and infrastructure, encompassing a broad spectrum of activities aimed at creating an optimal working environment that supports the organization's strategic objectives. [Read full explanation]
How is the integration of IoT devices transforming Facilities Management practices?
The integration of Internet of Things (IoT) devices into Facilities Management (FM) practices is revolutionizing how organizations approach the maintenance and optimization of their physical assets and environments. This transformation is not just about the adoption of new technologies but involves a strategic shift towards more proactive, predictive, and personalized management practices. [Read full explanation]
What impact does the rise of remote work have on Facilities Management strategies?
The rise of remote work has significantly impacted Facilities Management (FM) strategies across various industries. This shift, accelerated by the COVID-19 pandemic, has not only changed where employees work but also how organizations manage their physical spaces. [Read full explanation]
What role does Facility Management play in supporting corporate sustainability and ESG goals?
Facility Management (FM) plays a crucial role in supporting corporate sustainability and Environmental, Social, and Governance (ESG) goals. As organizations increasingly focus on sustainability and ESG metrics to drive their strategic agendas, the role of FM has evolved from operational support to being a strategic enabler of sustainable practices. [Read full explanation]
How can Facility Management contribute to enhancing employee well-being and productivity in the post-pandemic workplace?
Facility Management (FM) plays a pivotal role in enhancing employee well-being and productivity, especially in the post-pandemic workplace. The global health crisis has fundamentally changed the way organizations view and prioritize the physical work environment. [Read full explanation]
What strategies can be implemented to ensure Facility Management aligns with and supports overall business strategy and objectives?
Facility Management (FM) plays a critical role in supporting and aligning with an organization's overall strategy and objectives. This integration is essential for enhancing operational efficiency, improving employee productivity, and ultimately contributing to the bottom line. [Read full explanation]
How can Facility Management leverage data analytics to improve operational efficiency and decision-making?
Facility Management (FM) is an integral part of maintaining and enhancing the efficiency of an organization's operations. Leveraging data analytics in FM can significantly improve operational efficiency and decision-making. [Read full explanation]
How is the integration of IoT and AI technologies transforming Facility Management practices?
The integration of Internet of Things (IoT) and Artificial Intelligence (AI) technologies is revolutionizing Facility Management (FM) practices, driving efficiency, sustainability, and innovation. This transformation is not just about automating routine tasks but about redefining how facilities operate, engage with occupants, and contribute to the strategic goals of organizations. [Read full explanation]
What are the implications of the shift towards smart buildings and smart cities on the future of Facility Management?
The shift towards smart buildings and smart cities represents a transformative evolution in the way organizations manage facilities and interact with their environments. This transition is not merely about technological adoption but signifies a deeper change in Operational Excellence, Strategic Planning, and Sustainability Efforts. [Read full explanation]

Related Case Studies

Facilities Management Optimization in Aerospace

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Facility Management Advancement for Luxury Retail in High-End Fashion

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Facilities Management Reinvention for a Luxury Retailer in D2C

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Facilities Management Streamlining for Ecommerce in Competitive Landscape

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Scenario: An aerospace manufacturer in North America faces challenges in consolidating its Facility Management practices to improve operational efficiency and reduce costs.

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Facility Management Enhancement in Telecom Sector

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Strategic Facilities Management for Industrial Packaging Leader

Scenario: A leading industrial packaging firm in North America is facing operational inefficiencies in its facilities management.

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Energy Efficiency Enhancement for Power & Utilities Firm

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Facility Management Optimization for a Rapidly Scaling Tech Firm

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